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Your Money

News/Business. Christine Romans breaks down the financial news of the week.

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Splenda 6, U.s. 5, America 5, Cnn 3, Citi 3, Shanghai 3, Us 3, New York 2, Washington 2, Dallas 2, South Africa 2, Massachusetts 2, Philips Sonicare 2, Obama 2, Celine Dion 1, Fredricka Whitfield 1, Elizabeth Arden 1, Elton John 1, Switzerland 1, Interestingly 1,
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  CNN    Your Money    News/Business. Christine Romans  
   breaks down the financial news of the week.  

    December 7, 2013
    11:00 - 11:31am PST  

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>> the president of the united states there at the saban forum there in washington, a meeting between u.s. and israeli leaders. the conversation being dominated by iran's nuclear ability, the president also underscoring the strength of the u.s./israeli relations. we'll have much more on this forum 30 minutes from now in the "cnn newsroom." right now time for "your money." a possible tipping point for the economy. 203,000 jobs created last month. but as low-wage workers take to the streets it looking more like one america with two economies. i'm christine romans. this is "your money." america on track to create nearby 2.3 million jobs this year. but the quality of those jobs could spark the beginning of a 21st century labor movement. fast food workers protesting in 100 cities across the country this week. they're calling for a living wage, $15 an hour. they are not alone in their call for better pay. >> we know there are airport
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workers and fast food workers and nurse assistants and retail salespeople who work their tails off and are still living at or barely above poverty. >> the president has called for raising the minimum wage to $9 an hour. he also supports a bill in congress to raise it to $10.10 but fast foods workers say $15 an hour the living wage they need. the question, a living wage, who pies? could raising the minimum wage ultimately hurt the very worker rs it's meant to help? it's all in the eye of the beholder. first, look through the low wage workers eyes for a moment. the minimum wage hasn't risen since 2009. it's $7.25 today. that's, you know, about $15,000 a year. if you look at the federal level. workers say simply not enough to live on. look at it now through the eyes of the fast food ceo. if wages go up they will have to pass on the increased cost to consumers. good-bye $1 menu, hello $1.25 menu. burger king's ceo $6.5 million.
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yum brand ceo, taco bell, kfc, pizza hut, $11 million. the ceo may be the business view is a little bit different. auto makes. if workers get too expensive they can be replaced by machines. mcdonald's uses order touch screens in europe. apple bees is putting a tablet at every single table. the worker says they deserving a living wage. the average age of a fast food work worker 29 years old. more than quarter are parents raising kids if other view, these jobs were never intended to raise a family on. the minimum wage is for unskilled entry level workers. bigger economic forces at play here. it's not the fault of the industry. bottom line, the minimum wage, a loaded issue, an issue loaded with emotion and different points of view. here's how one wendy's worker put it.
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>> i haven't gone to college but i'm trying to fight for my career and fight to go to college and better my life and be more successful. >> dan is the chief economist. on a human level i want all of those people to make $15 an hour, $50 an hour. >> we all want them to make a lot of money, of course. >> there's a lot of reasons you find yourself in these jobs. but on on economic level, what does it fix to raise the wages? >> well, you know, there's a tenuous forces right now. a little bit of increase, some ceos are going to have to start thinking about it. when people were miserable they figured what do i have to lose to fighting back and unionizing. what many of these workers -- what many of these ceos risk and the companies work is unionization. of course, the unions have been also pushing this a little bit as well. they're not all the workers that are out there protesting. some are union plants. >> getting more effective over the past year a and half or so. >> they have been. their message resonates.
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when you're working full time and below the pov ter level, that's tough. on the other side of it we know. when you raise the cost of workers you also reduce the number of workers you hire. we also lose it to robotics and there may be more losses than we expect. >> technological unemployment or something, where something else comes up. i've heard this from people from inside the industries where they say, look, with a little more investment we can automate a lot of these jobs. >> exactably. >> then where do those workers go, diane? >> exactly. this is the real problem. you still can't get away from in-home health care. you're not going to have a robot do that so there are places they go. but they don't pay any better. those are very low wage jobs and very low skill jobs. i would argue automation has hollowed out much of the middle class as well because many tax prepares, people like that, you don't need them anymore because you can use your computer to do it. now we're moving into the low wage sector and that's a sector that had been growing. this month, not as much. good news as we got better jobs this month.
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>> 203,000 jobs created. unemployment rate, the best it's been since november 2008. and you're on track really here for 2 million jobs, you know, 2 million jobs this year. that's not bad. in fact, it's the best we've seen since 2005. also, you know, car sales were good, too. if you're confident enough to buy a car that tells me the economy is turning. >> i think it's a turning point for people who have -- who have a job or are nearly unemployed. nothing has changed for people unemployed here. >> no, it hasn't. they have a much lower confidence in the economy. they're feeling left behind. and they are left behind. >> you're seeing the low wage paycheck to paycheck worker is holding back. somebody who has a job, savings, not under water, they're starting to move forward again. you don't want to be that one american, two economies, it's dangerous. >> we have almost 32% of young adults 18 to 34 living with their parents now. either unemployed or underemployed. those kind of things hold back
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vehicle sales in a more broad based way. you've got a lot of issues sort of when you start pulling this apart that you still see. it's like seeing a garden beginning to sprout and then looking under it and seeing the nasty worms and stuff underneath. that's what we're seeing here, that duality and it's not a duality that we want in our economy. >> also like a baseball player on steroids with a bigs asterisk. >> we're tapering but we're still stimulating. we're going to keep the zero rates for much longer. i think 2016. the idea is they want to leave that punch bowl out there until more people are dancing on the floor. they wouldn't even mind if a couple of people got tipsy on the side because they can't want to catch up. they want to take the marginalized workers and bring them back in the party. >> good to see you. now, here's a tip about
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tips. the best ones come from jobs that promote sex, gambling, and booze. i'm not kidding p this is pay scale data. exotic datas are number one on pail scale list 25rks$.40 in tips. gaming dealers, $12.80. next on the list, wine steward, 10 attorney $10 an hour. bartenders, $9.50 an hour on tips. i'm in the wrong stories. give me 60 seconds on the clock. it's money time. >> the one time poster boy for corporate greed could soon be out or parole. he was convicted in 2005 for stealing hundreds of millions of dollars from his company. among his lavish expense, $6,000 shower curtain. ready to bing on turbo fast? not so fast. the streaming giant is releasing the original children's series five episodes at a time around the holidays. this isn't the end of
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bing-watching. all 12 episodes of "house of cards" season 2 will come out on valentine's day. how about a smart bra? microsoft is working on a bra that detects stress. norman rockwell sold for $46 million at sotheby's in new york. it set an auction record for a single american painting. and billy joel is in a new york state of mind. the piano man will perform at madison square garden once a month. don't go changing, billy. coming up, the obama care fix that isn't really a fix. but first, as the anniversary of the newtown shooting approach, america still doesn't have any america still doesn't have any gun laws for fighting violence. , you can use splenda® no calorie sweetener. splenda® lets you experience the joy of sugar without all the calories. think sugar, say splenda™
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1111 nearly one year ago, 20 gunned down were 6 and 7-year-old children. this was a red line by anybody's
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account. these were babies. this was a biblical slaughter of innocence. >> it appeared this would be a turning point in the gun reform debates. >> i will use all the powers of this office to help advance from preventing any more like this. we won't prevent them all but that can't be an excuse not to try. ultimate if this effort is going to succeed it's going to retire the help of the american people. >> one year later nothing has changed politically but it's hardly been business as usual in the gun industry. in the wake of future sored. it was a topic we made sure to hit hard when i sat down recently be bill simon, walmart's ceo. december 14th will the one-year anniversary of the sandy hook anniversary. at the time i was very interested in how many these gun sales are affecting your bottom line. we know in some stores you ran
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out of the ar-15 weapon. do you have any regrets selling that wildly popular firearm? >> of course, like every american we're concerned about the violence that exists in the country. we've been selling firearms, sporting weapons forks a long time. we are very responsible in our sales of firearms. it's something that we're focused on. and the debate in the country about whether they should be legal or not legal is not one that we get to participate in on a day-to-day basis. that's an issue that congress has to deal with. but i would tell you that if they're sold in the u.s., we want them sold through formal channels rather than gun shows. >> gun makers like smith & wesson have seen shares soaring since a dip immediately following the shooting. the company says it's operating at maximum production capacity. a new cnn poll shows support for stricter gun laws seem to be fading. 49% of americans say they support stricter gun control laws. that's down 5%.
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"global essence on guns" airs tomorrow night at 7:00 p.m. what did you learn about how those countries control gun violence? >> you know, it was interesting because looking at those different countries you see different aspects of what we think are the problem. so you've heard, i've heard, lots of politicians say the real problem is our violent popular culture, particularly violent video games. so we actually went to the country that is more obsessed with violent video games than the united states, and that's japan. we tried to look at whether you could find any connection between violent popular culture, violent video games -- gun violen violence. what turns out japan has a stunningly low rate of gun violence. maybe 25 times lower than ours. and why? they have pretty strict gun control. they have, in fact, they have one of the world's most strict gun control laws. despite having crazy violence video games, it doesn't transfer.
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when we went to follow the japanese mob. it turns tout the japanese mob doesn't use guns. they have the guns but they feel like it's too much of a hassle when you use them because the police really busts you when you do that. or we went to switzerland where they all own guns but, again, very low gun violence because there's a lot of registration, a lot of background checks. so each one handle it a different way. nobody has the approach we have, which is essentially completely laissez-fai laissez-faire. >> i know you wrote your column in the "washington post"," this is a global assessment comparing the performance of 15-year-old students in developing countries around the world. results, not great. it shows that best were average. at worst, we're falling behind. fallen since 2009, american kids. is this fixable? >> it is fixable. give you a simple example. the shanghai 15-year-old is two years ahead in mathematics as thes massachusetts 15-year-old. massachusetts is the best performing --
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>> two best performing places in both places. >> yes. shanghai is two years ahead on matt on that test. here's why. if you calculate -- i did this calculation. if you calculate how much time the shanghai kids spends in school over 15 years, by the time they get to 15, they have spent two full academic years more than any kid in america. >> wow. >> is it any surprise that when they take a math -- anything we do, christine, whether it's sports, music, the more you do it, the better you get. >> good point. speaking of, i don't know, the more you do it, the better you get. nelson mandela, someone who was consistent and such a leader. u.s. markets observed moments of silence for him on friday. you know, he visited the floor of the exchange in 2002. and i remember he went and met so many people, the shoe shine guy. he went out of his way to meet everyone. he also, you know, he worked with some of the biggest names in corporate america to change
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the way the business gets done in south africa. he reportedly went to coca-cola during his visit in the u.s. in the '90s. rejected the company to sponsor his trip because it did still business in south africa. what influence did he have on the how companies behave? >> it was quite important because he did something which surprised people. remember, the anc was a radical revolutionary organization. it drew a lot of support from communist countries, from revolutionary movements, castro, gadhafi, arafat. everyone thought he was going to be a left wing maniac. he was very pro business. he was very pro markets because he understood the future of south africa depended on the white business class staying there, being productive. interestingly, 27 years in prison he came out of an old left wing background. he didn't bust the budget spending money on blacks. because of that corporations trusted him.
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they understood that he didn't want to nationalize anything. he's asking us to behave ethically. i think it's a very good model for the future for third world leaders, particularly to look at. you can, you know, as long as you understand the power of the market, you can also understand that you can ask businesspeople to behave honorably. >> your prime time special "global lessons on guns" tomorrow night 7:00 p.m. right here on cnn. thank you. coming up, elton john, shania twain, celine dion, the next music icon to join these legends in vegas, it might surprise you. that's next. it's estimated that 30% of the traffic in a city is caused by people looking for parking. that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking,
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which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. and this park is the inside of your body. see the special psyllium fiber in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits
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something is on the way to vegas for serious, serious cash. britney spears is turning 32 this week, all grown up. she's joining other legends in sin city for a fat paycheck. take a look at the business being this pop icon.
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britney spears is back to work with a brand new album "britney jean and she's headed to vegas. not to get married this time but to make money. a two-year planet hollywood residency, earning a reported $15 million a year, or $300,000 a show. more money for a woman who topped forbes list of highest earning female musicians last year, bringing in $58 million. she's come a long way from mouseketeer, then teen pop icon. her first single became one of the best-selling singles ever. and her first album, the best-selling debut in history, 30 million copies worldwide her second album sold 25 million copies. and britney was all grown up.
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two more albums and a big screen debut. that film "cross roads" brought in more than $60 million world wide. with success came personal struggles and a professional pause, playing out in front of flash bulbs. her dad taking control of her finances, he still controls the money today. but fans wanted more. spears gave it to them with her comeback album "blackout". the follow-up qutd s"circus" wi first number one single since her "baby one more time" days. "circus" tour brought in $130 million worldwide wide. in 2 011 brought in. as judge on the "x factor" last season -- >> i want to let you on stage. >> she earned $15 million for
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those opinions. and with fame came endorsements. a perfume empire with elizabeth arden, deals over the years with candy's, hasbro, toyota, and pepsi, all at just 32 she's worth more than $200 million. the business of being britney spears is -- ♪ crazy >> all grown up or just getting started. spears has sold 90 million records worldwide. if you want to see her in va gas, hurry. tickets, we're told, are going fast. coming up, as hackers hit the web's most popular sites, what you can do to protect yourself and why the obama care website fix just creates more problems. that's next. stick with innovation. stick with power. stick with technology. get the new flexcare platinum from philips sonicare and save now. philips sonicare.
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well, did you know that just one sheet of bounce outdoor fresh gives you more freshness than two sheets of the leading national store brand? who knew? so, how do you get your bounce? with more freshness in a single sheet. time to change a passwords. cyber security at trust waves say hackers gained access to 2 million accounts. popular sites like facebook,
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g-mail, twitter, yahoo!. the firm says there's no hard evidence the hackers accessed the user accounts. a researcher tells cnn money, probably did. experts recommend changing your passwords for something hard to hack and updating your antivirus software. cnn money has valuable information on how to protect yourself. check out how not to get hacked on "cnn money." the obama care fiasco is down right absurd. the administration says the health care.gov website is fixed so logon and apply if -- if you're one of the first 50,000 people on the site. if not, get in line. and the government is going to send you an e-mail telling you a better time to sign up. imagine doing holiday shopping on a site like amazon. you mow what you want. you can't buy it until other people complete their purchases. would you stick around and wait for amazon to send you an e-mail waiting on you to come bark and buy something? how about your fantasy football team. see how you're fairing on a sunday afternoon, right? no, come back at midnight and the site will send you the
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e-mail. it kind of reminds me of this, remember this? logging on, verifying user name and password, connecting, that's what this feels like. what's the big deal? a little patience never hurt anyone, right? wrong. obama care is different. it won't work if young americans don't sign up. technology gives young people the luxury of instant everything. they've got news, they've got texts, pictures, videos, shopping, games. all at their fingertips. the good news about the obama care website is a complete misnomer. yes, it's better than it was but it's nowhere near writ should be for a website in 2013. effort very people you need to get in there and get involved. and then there's this. a recent gallop poll shows 37% of americans age 18 to 29d say they are not particular with the health care law. compare to to a quarter to the older age groups. the fine is $95 or 1% of a family's income for not having insurance next year. experts say it's going to take a couple years to get younger americans enrolled.
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mopeful hopefully by that time the remember site will be fixed. for real, really fixed. that's it for this week's "your money." see you back here at 9:30 eastern and 2:00 p.m. eastern as well. see you there. hello, everyone. i'm fredricka whitfield. a storm system has lashed partz of the south and southeast. so far, texas has taken the brunt of it. cnn's ed lavandera is live for us right now in dallas. so, ed, it's still looks like you're in the deep freeze in the big "d." >> it's look the largest ice skating rink that's ever been dropped down on any one location. it feels like it. it's treacherous for a lot of people. in fact, this morning we heard reports and saw footage of a truck that was slid off the highway along interstate 35 north of dallas and into lake